Partnership Basis vs Stock Basis in S-Corps

Related BrainMass Solutions

• This post addresses multiple partnership and tax scenarios.

  Determine Bonnie's initial basis in her stock, assuming that she receives a 50% interest. Bonnie's initial basis in her stock would be subject to Section 1371, which is applicable to both C and S Corps.

• Alice and Joe are going to form a business entity. Alice wil

  Joe's basis is wrong, it wouldn't be the FMV, it would be $180,000. In an S Corp, the shareholders would not have different recognized gains based on cash/vs. non-cash contributions.

• Basis of S corporation Shareholder

  The purchase of stock in an S corporation results in differences of timing of assets that affect the new owner. Debt varies for tax and AMT purposes using the S corporation basis.

• Tax return effects of at-risk and passive loss rules

  The first limitation for taking a loss from a partnership or an S-corporation has to do with whether the partner or owner has basis in the activity.

• Advanced Taxation: Stock, entity type, basis, distributions

  Compute Bob's stock basis at the end of the year. Bob's basis in the stock is what he paid for it. The scenario being discussed would relate to an S corporation, not a C. Tim and Ayana each have a 50% ownership is Robert Partnership.

• Tax Accounting: 20 comprehensive corporate, partnership, LLC

  . $ 80,000 14.Oliver and Wendell are the two equal shareholders of Holmes Inc, an S corporation. It made an S election in its first year of operations. Each shareholder has a $10,000 basis in his stock at the beginning of the year.

• Kim had the following transactions for 2006: Salary: $48,000

  The IRS also made it clear to closely held corps, especially over the past few years that reasonable compensation of closely held corps. will examine several facts in a reasonable comp. audit - the qualifications of the owner, that the salaries are in-line

• Partnership Basis of Assets

  On January 2, 2008 David loans his S corporation $10,000, and by the end of 2008 David's stock basis is zero and the basis in his note has been reduced to $8,000. During 2009, the company's operating income is $10,000.

• Taxation: Sec 351, assumed liabilities, distributive share

  What is Semaj's basis in the company's stock? 8. What is Caden's basis in the company's stock? 9. What is Textbook Inc.'s basis in the building? 10. What is Textbook Inc.'s basis in the land? 1.